NEGOTIATION – CONTRACT TERMS A real estate transaction is a fluid process that does not end with an accepted offer. Negotiations often continue on some level all the way to the closing. A REALTOR®’s
objectivity,
experience and counsel are essential to this process. Some of the most common points that are negotiated include:
Price Your broker’s knowledge of the current market is invaluable in helping you decide whether to accept the offered price and terms or counter. They will also help you consider the time value of money in your decision, i.e. will a higher offer offset potential additional carrying costs? Mortgage Contingency Most buyers purchase a home subject to obtaining a mortgage. The terms of the mortgage and the timeframe for securing a financing commitment must be stated in the contract. Make sure you are comfortable with these terms.
Home Inspection Most buyers choose to conduct an inspection of the property with a licensed home inspector. If the inspector uncovers any problems, you and the buyer must negotiate what items will be addressed and who will pay for them. Attorney Approval Attorney approval is usually a one-week period, in which both you and the buyer have your attorneys review the contract and suggest alterations. Closing Date This is the date when ownership changes hands and usually, but not always, the date when you must vacate and the buyer may occupy the property. If you have specific requirements for scheduling the closing due to your own move, the buyer’s flexibility in this regard might be an important factor in deciding to accept an offer.
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